The Strategy document says: “Internships need to be opened up to all young people. We will continue to encourage employers to open up their employment methods, and we are asking business to offer internships openly and transparently and provide financial support to ensure fair access. This financial support could consist of either payment of at least the appropriate national minimum wage rate, or alternatively payment of reasonable out of pocket expenses in compliance with national minimum wage law.”

It adds: “We want to improve understanding of the application of national minimum wage legislation to internships and ensure that employers comply with it. Where an individual is entitled to the minimum wage they should receive it and we take failure to do so very seriously. We are updating our guidance on payment of work experience including internships to ensure that employers and individuals are clear about their rights and responsibilities.”

The Government said it is “leading by example” by expanding its Civil Service internships programme, and simultaneously bringing an end to informal placements so that parents with connections can no longer give their children an advantage. It said this should be a model for businesses to follow.

The Strategy was launched by Deputy Prime Minister Nick Clegg, who said he wants to end the “who you know” culture of internships, but he has come under fire after it emerged that he himself had benefited from an internship at a Finnish bank, secured as a result of "family connections" and that the Liberal Democrats have used unpaid interns.

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